Items on Chron.com and elsewhere related to energy:
• Obama’s energy plan may be curbed but not halted
• The President and the Planet, On a Budget
• Natural Gas May Be Biggest Winner of Election Night
• Nuclear energy industry congratulates Obama
• U.S. oil, natural gas industry ready to work with new administration
• Alaska increased proven US oil reserves in 2007: At least Palin has something good to go home to.
• Democrats’ Impulse Test
• Who should run the SEC in an Obama administration?
• Life in a banana republic: He means the U.S.
And, some thoughts from energy analysts on the election outcome:
From Tudor Pickering Holt:
• Obama effect? As long as gasoline prices stay low, wouldn’t count on much Obama energy actions in near term as economy Item 1-50 on agenda. Figure Obama no particular friend to energy industry (remember “oil companies should share their record profitability” comments). He is friend to alternative energy (big rallies for those stocks in past few days)..and will be better for gas than oil. Watch for carbon tax (ie government revenue source) which could raise energy costs, hurt demand
From Simmons & Co:
1) Obama plans to increase fuel economy standards 4 % per year while providing aid for domestic automakers to retool their manufacturing facilities in America to produce these vehicles. Obama therefore supports an increase to current CAFE standards;
2) Obama plans to get 1 million plug-in hybrid cars on the road by 2015;
3) Obama supports a new $7,000 tax credit for purchasing advanced vehicles;
4) Obama plans to establish a National Low Carbon Fuel Standard (LCFS) to reduce the carbon in our fuels 10 % by 2020.
Obama will also require 60 billion gallons of advanced biofuels to be phased into our fuel supply by 2030. Note that 60 billion gallons equates to just over 3.9 mb/d, or approximately 42% of 2007 gasoline demand.
The current Renewable Fuels Standard calls for 36 billion gallons of renewable fuel to be utilized by 2022.
While reasonable minds can differ as to the feasibility of the above policies ever actually being supported or implemented, it is important to be aware that these policies have the support of Senator Obama and could impact future oil demand.
We believe President-elect Obama’s victory is good news for the renewable energy sector. Obama is highly likely to propose an economic stimulus bill early in his Presidency that will support the sector by stimulating “green collar” jobs.
Regarding tax credits, the current Congress and President Bush recently extended the Investment Tax Credit (ITC) for the solar industry for 8 years and the Production Tax Credit (PTC) for the wind industry for 1 year. We do expect President-elect Obama to attempt to provide a longer extension for the PTC.
In addition, President-elect Obama discussed on the campaign trail spending $150 bn over 10 years on renewable energy. While we are not sure what they specifics of the plan would entail, we believe he is likely to pay for it through higher taxes on the major integrated oil companies. He will also likely push natural gas fueled vehicles.
And here’s the pre-election Obama/Biden energy plan